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Question 20 On January 1, 2020, Cheyenne Company purchased 12% bonds having a maturity value of $270,000, for $290,470.00. The bonds provide the bondholders with
Question 20 On January 1, 2020, Cheyenne Company purchased 12% bonds having a maturity value of $270,000, for $290,470.00. The bonds provide the bondholders with a 104 yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Cheyenne Company uses the effective interest method to allocate unamortized discount of premium. The bonds are dassified in the held to-maturity category. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places ... 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Debit Credit Date Account Titles and Explanation Jan 1, 2020 Carrying Amount of Bonds Prepare a bond amortization schedule. (Round answers to 2 decimal places, 0.0.2.525.25.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Cash Interest Premium Date Received Revenue Amortized 1/1/20 $ 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 2525.25. Credit account titles Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account thes are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Tities and Explanation Dec 31, 2020 Prepare the journal entry to record the interest revenue and the mortization at December 31, 2021. (Round answers to 2 decimal places... 2,52525. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required select "No Entry for the account titles and enter for the amounts.) Date Account Tities and Explanation Debat Credit Dec 31, 2021 Click if you would like to Show Work for this question: Doen ShowWack
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